Comscore Inc. (NASDAQ: SCOR) shares surged after announcing a recapitalization agreement with major preferred shareholders Charter Communications, Liberty Broadband Corporation, and Cerberus Capital Management. The deal aims to simplify the balance sheet, cut dividend obligations, and boost market position pending stockholder approval.

An independent special committee and the board of Comscore unanimously recommended the recapitalization plan. The agreement involves swapping Series B preferred stock for common shares and new Series C preferred shares with no dividend, removing over $18 million in annual obligations.

The recapitalization plan includes exchanging $80 million in Series B preferred shares for common stock at $8.11 per share and converting $183.7 million into Series C preferred stock priced at $14.50 per share. The new Series C shares can convert into common stock at a one-to-one ratio, eliminating the right to a $47 million special dividend.

CEO Jon Carpenter stated that the recapitalization enhances Comscore’s financial flexibility as artificial intelligence transforms media measurement, strengthening the company’s foundation for long-term growth. The agreement reduces the board to 7 members, scales back preferred shareholders’ director rights, and maintains independent oversight with voting caps and conversion limits.

If approved, the recapitalization would see over 22 million shares issued on an as-converted basis, giving preferred shareholders nearly 82% of equity. This new structure is expected to boost investor confidence and enhance Comscore’s competitive position. SCOR shares were trading higher by 29.25% to $7.910 premarket.

Read more at Yahoo Finance: Comscore Cuts Dividends, Reshapes Board